FY ROADSHOW PRESENTATION The world of Vopak

Transcription

1 FY ROADSHOW PRESENTATION The world of Vopak

2 Forward-looking Statement This presentation contains forward-looking statements, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and Vopak cannot guarantee the accuracy and completeness of forward-looking statements. These risks and uncertainties include, but are not limited to, factors affecting the realization of ambitions and financial expectations, developments regarding the potential capital raising, exceptional income and expense items, operational developments and trading conditions, economic, political and foreign exchange developments and changes to IFRS reporting rules. Vopak s EBITDA outlook does not represent a forecast or any expectation of future results or financial. Statements of a forward-looking nature issued by the company must always be assessed in the context of the events, risks and uncertainties of the markets and environments in which Vopak operates. These factors could lead to actual results being materially different from those expected, and Vopak does not undertake to publicly update or revise any of these forward-looking statements. 2 Roadshow presentation Q3

3 General

4 Vopak at a glance Building on an impressive history of almost 400 years Listed at the NYSE Euronext cap of EUR 6.2 billion* World s largest independent tank terminal operator: 80 terminals in 28 countries Track record developing new terminals in new markets Share price from EUR 7.8 in 2004 to EUR 49.0 in 2015* Thorough analysis of future flows and imbalances leader in independent storage of oil, chemicals and gas with a capacity of 34 million cbm * As per 26 February Roadshow presentation FY

5 Financial development and indicators EBITDA development In EUR million Cash flow from operating activities (net) In EUR million Dividend In EUR Occupancy rate In percent Roadshow presentation FY

6 Investment thesis Increasing global flows require storage infrastructure Diversified portfolio with presence at prime locations Stable margins and long-term take-or-pay contracts Strong capital structure with balanced leverage Disciplined capital allocation with strict investment criteria Focus on cash flow generation Unique combination of robust cash flow, consistent dividend and growth opportunities 6 Roadshow presentation FY

7 Priorities for cash 1 Debt servicing EUR 2.0 billion, remaining maturity 8.9 years, average interest 4.0% 2 Dividend EUR 0.7b paid to shareholders in the last 10 years 3 Disciplined growth Network expended from 20 to 34 million cbm* 4 Capital optimization Create further flexibility for growth * With 6 million cbm under construction 7 Roadshow presentation FY

8 challenges Strategic Operational Increasing competition Changing flows People with the right skills Expansion projects Geopolitics Legislation Capital constraints Reputation Compliance Financial 8 Roadshow presentation FY

9 Discussions from investor meetings dynamics Overcapacity and pricing pressure Projects Projects under development Impact contango and backwardation Ramp-up of new capacity Governance Network alignment Governing Joint Ventures Divestment program 9 Roadshow presentation FY

10 10

11 Trends driving storage demand Population GDP Energy demand 15-35% % 15-55% US oil and gas export scenarios LNG as transport fuel Shale gas in China European refining & petrochemical Biofuel scenarios Energy role of Africa Source: UN (); World bank (); IMF (); IEA (); Shell () and various other sources. 11 Roadshow presentation FY

12 HUB General DYNAMICS DEMAND DRIVERS NETWORK ALIGNMENT QUESTIONS AND ANSWERS Imbalances continue to develop Refined petroleum accumulated deficits Refined petroleum accumulated surpluses increasing trade expected to continue 12 Roadshow presentation FY

13 HUB General DYNAMICS DEMAND DRIVERS NETWORK ALIGNMENT QUESTIONS AND ANSWERS Imbalances continue to develop Source: ATEC / ICIS database and Vopak intelligence US and Middle East export; Asia and Europe import 13 Roadshow presentation FY

14 Product developments Oil production exceeds demand resulting in price reduction. Lower oil prices and interest rates, contango decreases cost of holding stock Customer interest increased to take positions. Chemicals: North America is investing in petrochemicals benefiting from prolonged advantaged feedstock positions Rationalization and consolidation of production capacity in Europe and North East Asia as a result of higher cost and lagging demand Biofuels demand is stable in mature markets and growing in non-oecd countries. Duties limit flows into EU. Intra EU at stable levels Vegoils demand grew steadily due to growth in population and wealth level LNG trade grew with more short-term contracts and a larger diversity of players Asian and European LNG prices decreased yet small price differentials across regions remained Arbitration has closed Production growth in China and Middle-East continues 14 Roadshow presentation FY

15 Strategy execution 15

16 Vopak s ambition Presence at prime locations Safety and service Strong link supply chain Value creation Our values Solid leadership position in the global independent tank storage market 16 Roadshow presentation FY

17 Our strategic framework Growth leadership Operational leadership Customer leadership Our Sustainability Foundation Excellent People I Environmental Care I Health and Safety I Responsible Partner 17 Roadshow presentation FY

18 Strategy execution Strategic Growth Divestment Program Reduce * Capex Reduce * Cost base 4 categories 15 terminals 100 EUR million 30 EUR million * Up to and including Roadshow presentation FY

19 Selective capital discipline growth 19

20 Global presence Hamburg London Gothenburg Malmo Sodertalje Gavle Kotka Hamina Tallinn Rotterdam Antwerp Shanghai Ningbo Lanshan Teesside Windmill Tarragona Barcelona Algeciras Quebec Hamilton Montreal Long Beach Los Angeles Houston Savanah Wilmington Altamira Vera Cruz Coatzacoalcos Barranquilla Zhangjiagang Tianjin Ulsan Karachi Nagoya Moji Yokohama Kobe Kawasaki Kandla Rayong Ho Chi Mihn City Kertih Pengerang Singapore Jakarta Merak Cartagena Puerto Cabello Paranagua Alemoa Rocio Durban Yanbu Al Jubail Fujairah Darwin Sydney 20 Roadshow presentation FY

21 Return requirements for investment Footprint in emerging markets First-mover advantage I Optimization growth opportunities II Option value Contribution from key accounts VI III Mitigating downward risks Growth along with key accounts Strategic alliances Pay-back period Project NPV / IRR Equity IRR Local WACC V IV Commercial coverage on projects Contracted infrastructure Launching Customers MoUs/LoIs 21 Roadshow presentation FY

22 Investments and divestments Oil Chemicals Industrial Gasses Divestments Haiteng (Industrial terminal) 890,000 cbm Banyan rock cavern Canterm (Import terminal) 480,000 cbm Pengerang (Hub location) 509,000 cbm Peru* 871,000 cbm Europoort (Hub location) (180,000 cbm) Note: This is only a selection of projects. * Vopak has decided not to participate in the tender for the next concession period. 400,000 cbm 22 Roadshow presentation FY

23 Storage capacity developments Storage capacity developments In million cbm; commissioned and under development Brownfield Greenfield Acquisition Divestments Brownfield Greenfield Divestments 2019 Note: Including only projects under development estimated to be commissioned for the period FY and excluding the to be realized divestments as announced in the business review. 23 Roadshow presentation FY

24 Selective growth opportunities Storage capacity In million cbm Subsidiaries Joint ventures and associates Only acting as operator Vopak well positioned to further improve risk-return profile Note: Including only announced projects under development estimated to be commissioned for the period and excluding the to be realized divestments as announced in the business review. 24 Roadshow presentation FY

25 Storage capacity under construction Country Terminal Vopak's ownership Products Capacity (cbm) Existing terminals Brazil Aratu 100% Chemicals 8,900 Netherlands Vlisssingen 100% LPG 36,800 Canada Canterm 100% Oil products 48,200 South Africa Durban 70% Oil products 64,000 Belgium Antw erp (Eurotank) 100% Chemicals 40,000 Germany Hamburg 100% Oil products 65,000 China Lingang 50% Chemicals 40,000 Brazil Alemoa 100% Chemicals 51,000 Singapore Banyan 55.6%¹ LPG 80,000 South Africa Durban 70% Oil products 60,200 UAE Fujairah 33.3% Oil products 478,000 Various Small expansions at various terminals Various 34,000 start construction expected to be commissioned 1. As result of participation by a third party in the project, Vopak s ownership percentage dropped from 69.5% to 55.6%. 25 Roadshow presentation FY

26 Storage capacity under construction Country Terminal Vopak's ownership Products Capacity (cbm) New terminals Malaysia Pengerang 44.1% Oil products 413,000 China Dongguan 50% Chemicals 153,000 China Hainan 49% Oil products 1,350,000 Saudi Arabia Jubail 25% Chemicals 220,000 Banyan Cavern Singapore Storage Services n.a.² Oil products 990,000 Malaysia Pengerang 25% UK Thames Oilport 100% Oil products Chemicals/oil products/lpg 2,100,000 Under review Under construction in the period up to and including 2017: 5.0 million CBM start construction expected to be commissioned 2. Only acting as operator; Vopak Terminals Singapore (in which Vopak holds 69.5%) has a 45% interest in a joint service company. 26 Roadshow presentation FY

27 Selective capital disciplined growth Total investments In EUR million Expansion capex** In EUR million; 100% = EUR 3,300 million 2,235 3,284 Forecasted capex ~2,800 ~500 Remaining Vopak share in capex (Group capex and equity share in JV s) ~ Other capex* Expansion capex** Group capex spent Contributed Vopak equity share in JV s Total partner s equity share in JV s Total non recourse finance in JV s Note: Total approved expansion capex related to 6.2 million cbm under development is ~EUR 3,300 million; * Forecasted Sustaining and Improvement Capex up to and including 2016 ** Total approved expansion capex related to 6.2 million cbm under development in the years 2015 up to and including Roadshow presentation FY

28 Selective capital disciplined growth Senior net debt : EBITDA ratio Maximum ratio under other PP programs and syndicated revolving credit facility Maximum ratio under current US PP programs * Note: due to the retrospective application of the Revised IAS 19, EBITDA for has been restated. For certain projects in joint ventures, additional limited guarantees have been provided, affecting the Senior net debt : EBITDA; * Based on Dutch GAAP. 28 Roadshow presentation FY

29 Vopak s capital structure Ordinary shares Private placement program* Syndicated revolving credit facility* Equity(-like)* Listed on Euronext capitalization: EUR 6.2 billion as per February 2015 USD: 2.0 billion SGD: 225 million and JPY: 20 billion Average remaining duration ~ 8 years EUR 1.0 billion 15 banks participating Duration until 2 February 2018 EUR 250 million draw Subordinated loans Subordinated USPP loans: USD million Preference shares Cancelled as per 1 January 2015 EUR 44 million * As per 31 December 29 Roadshow presentation FY

30 Debt repayment schedule Debt repayment schedule In EUR million RCF flexibility RCF drawn Subordinated US PP US PP Asian PP Other 1,200 1, Roadshow presentation FY

31 Net finance costs Net finance costs In EUR million Net finance costs In EUR million Interest and dividend income Finance costs Net finance costs Net interest bearing debt In EUR million Average interest rate In percent ,018 1,431 1,606 1,748 1,825 2, % 6.3% 5.4% 5.4% 5.2% 4.7% 4.4% 4.5% 4.0% Roadshow presentation FY

32 Solvency ratio Total equity and liabilities In EUR million 1,703 57% 43% 1,997 56% 44% 2,585 61% 39% 2,947 55% 45% 3,649 58% 42% 4,152 56% 44% 4,386 60% 40% 4,644 58% 42% 5,226 64% 36% Net liabilities* Equity (restated) Over EUR 100 million equity adjustments for pensions * Cash and cash equivalents are subtracted from Liabilities; Note: Due to the retrospective application of the Revised IAS 19, Equity and Liabilities for have been restated. 32 Roadshow presentation FY

33 Proposed dividend Dividend and EPS 2006-** In EUR Dividend policy: Barring exceptional circumstances, the intention is to pay an annual cash dividend of 25-50% of the net profit* Pay-out ratio 39% Note: due to the retrospective application of the Revised IAS 19, EBITDA for has been restated ;* Excluding exceptional items; attributable to holders of ordinary shares; ** Excluding exceptional items; historical figures adjusted for 1:2 share split effectuated 17 May Roadshow presentation FY

34 Customer leadership 34

35 Vopak s business model Share of revenues Services Tank storage Blending nitrogen Adding / cooling Heating / unloading of ships / railcars / trucks Loading Excess througput fees Monthly invoicing in arrears Fixed rental fees for capacity Fixed number of throughputs per year V opak does not own the product Monthly invoicing in advance Note: general overview of business model. Can vary per terminal. 35 Roadshow presentation FY

36 Global, regional and local clients Global clients Regional clients Local clients Active at multiple Vopak locations around the world Current turnover and future potential define Vopak s global network account approach Active in more than one Vopak location on regional level Can be largest clients at a division Regional marketing Active in one Vopak location Can be largest clients at a specific Vopak location Local sales approach 36 Roadshow presentation FY Q3

37 share according to definition Oil storage market In million cbm Non oil storage market* In million cbm Total storage market In million cbm Primary competition Secondary competition Vopak Total Vopak share As a % of world market 8% 21% 11% As a % of primary storage market** 13% 25% 16% * Non-oil includes chemicals, vegoils, biofuels and gasses; ** Defined as the primary competition plus Vopak s Storage Capacity. Note: In million cbm per 31 December ; excluding storage market for LNG. Source: Vopak own research. 37 Roadshow presentation FY Q3

38 EBIT(DA) margin development EBIT(DA) margin In percent EBITDA margin EBIT margin Focus on creating more value from our core assets Note: Excluding exceptional items; excluding net result from joint ventures and associates. 38 Roadshow presentation FY

39 Operational excellence 39

40 Sustainability Excellent people Safety and Health Environmental care Responsible partner Have the right people and create an agile and solution driven culture Provide a healthy and safe workplace for our employees and contractors Be energy and water efficient and reduce emissions and waste Be a responsible partner for our stakeholders 40 Roadshow presentation FY Q3

41 Safety Total injury rate (TIR) Total injuries per 200,000 hours worked by own employees and contractors Lost time injury rate (LTIR) Total injuries leading to lost time per 200,000 hours worked by own employees and contractors Process incidents # API RP 754 Tier 1 and Tier 2 incidents Process safety events rate (PSER) Tier 1 and Tier 2 incidents per 200,000 hours worked by own employees and contractors (excluding greenfield projects) Note: safety is reported in line with the Vopak s sustainability scope 41 Roadshow presentation FY

42 Service improvements Jetty upgrades Sebarok, Singapore Manifold expansion Westpoort, Netherlands Truck management New rail loading spots Savannah, US Port pipeline connections Fujairah, UAE Vapour combustion Lanshan, China Note: The examples are for illustration purposes and do not cover all service improvements performed. ACS, Belgium 42 Roadshow presentation FY

43 Efficiency enhancements Sustaining & improvement capex reduction Organizational productivity enhancements Leverage on standards and procedures 43 Roadshow presentation FY

44 44

45 Topics influencing results Capacity expansions Geopolitics and regulation Oil price volatility Currency effects 45 Roadshow presentation FY

46 Results Terminal Network * 33.8 In million cbm EBITDA Excl. ex items *** 763 In EUR million Occupancy Rate ** 88% Average Cash flows Operating **** 703 In EUR million * Terminal network is defined as the total available storage capacity (jointly) operated by the Group at the end of the reporting period, being storage capacity for subsidiaries, joint ventures, associates (with the exception of Maasvlakte Olie Terminal in the Netherlands which is based on the attributable capacity, being 1,085,786 cbm), and other (equity) interests, and including currently out of service capacity due to maintenance and inspection programs; ** Subsidiaries only; *** EBITDA (Earnings Before Interest Depreciation and Amortization) excludes exceptionals and includes net result of joint ventures and associates. **** Cash flow from operating activities on a net basis. 46 Roadshow presentation FY

47 EBITDA development Full potential excellence Comprehensive scenario planning Alignment network and competitive position Growth strategy Tank terminal strategy Focus on Free cash flow generation 47 Roadshow presentation FY

48 EBITDA development EBITDA development In EUR million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 result lower than Q3 result as previously announced Note: EBITDA in EUR million excluding exceptional items and including joint ventures and associates; Due to the retrospective application of the Revised IAS 19, EBITDA figures have been restated. 48 Roadshow presentation FY

49 Q4 summary EBITDA* In EUR million EBIT* In EUR million % +6% % +5% Q4 Q4 Q4 Q4 Q4 Q4 Net profit** In EUR million Occupancy rate*** In percent -12% -4% % 87% 88% Q4 Q4 Q4 Q4 Q4 Q4 * Excluding exceptional items; including net result from joint ventures and associates; ** Net profit attributable to holders of ordinary shares -excluding exceptional items- ; *** Subsidiaries only. 49 Roadshow presentation FY

50 summary Revenues In EUR million EBITDA* In EUR million EBIT* In EUR million 1,314-1% +2% 1,295 1, % +1% % -2% Net profit** In EUR million Occupancy rate*** In percent Storage capacity In million cbm % -6% % 88% 88% * Excluding exceptional items; including net result from joint ventures and associates; ** Net profit attributable to holders of ordinary shares -excluding exceptional items- ; *** Subsidiaries only. 50 Roadshow presentation FY

51 EBITDA analysis FX-effect against FX Acquisitions /Greenfields /Divestments /Pre-opex Americas Netherlands Asia EMEA LNG Other 51 Roadshow presentation FY

52 EBIT In EUR million Group operating profit In EUR million Net result joint ventures incl. exceptional items EBIT incl. exceptional items Exceptional gain (loss) (2.5) (55.1) EBIT excl. exceptional items % Exceptional losses following the actions of the business review 52 Roadshow presentation FY

53 Occupancy rate developments Occupancy rate In percent Full potential playing field 90-95% Current playing field 85-90% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Note: Subsidiaries only. 53 Roadshow presentation FY

54 Occupancy rate per division Netherlands EMEA -6pp +4pp 0pp -4pp Occupancy rate 89% 83% 87% 88% 88% 84% -3pp 0pp 91% 88% 88% Asia Americas 94% 0pp 94% 1pp 95% -4pp +0pp 94% 90% 90% Note: Subsidiaries only. 54 Roadshow presentation FY

55 Original contract duration Contract position In percent of revenues Contract position In percent of revenues Contract position In percent of revenues 18% 20% 21% 52% 52% 53% 30% 28% 26% < 1 year 1-3 year > 3 year Balanced contract portfolio Note: Based on original contract duration; Subsidiaries only. 55 Roadshow presentation FY

56 EBIT(DA) margin development EBIT(DA) margin In percent EBITDA margin EBIT margin Stable margins Note: Excluding exceptional items; excluding net result from joint ventures and associates. 56 Roadshow presentation FY

57 Cash flow developments Cash flow from operating activities (net) In EUR million Focus on Free cash flow generation 57 Roadshow presentation FY

58 Financial ratio s ROCE* In % ROE** In % 21.9% Non-IFRS Proportional information CFROGA*** In % 18.1% 16.3% 14.6% 18.8% 16.7% 11.8% 10.9% 10.3% Focus on Free cash flow and improving capital efficiency * ROCE is defined as EBIT-excluding exceptional items- as percentage of the capital employed. ** ROE is defined as Net Profit excluding exceptionals as percentage of the Equity excluding financing preference shares and Non-controlling Interest. *** CFROGA is defined as EBITDA minus the statutory income tax charge on EBIT divided by the average historical investment (gross assets). 58 Roadshow presentation FY

59 Non-IFRS proportional information Proportionate EBITDA* In EUR million Cash Flow Return on Gross Assets In % Occupancy rate subsidiaries and joint ventures In % 12.3% 12.2% 11.6% 11.8% 10.9% 10.3% 94% 92% 92% 90% 88% 88% Roadshow presentation FY

60 Divisional results 60

61 Revenues per division Netherlands EMEA Revenues -1% +2% -3% 0% % +4% ,314 1,295 1,323 Asia Americas +1% +3% % +3% Note: Revenues in EUR million. 61 Roadshow presentation FY

62 EBITDA per division Netherlands EMEA EBITDA* -2% +1% -9% +4% % -13% Asia Americas Non-allocated +3% +3% % % % -55% Note: EBITDA in EUR million excluding exceptional items and including net result of joint ventures and associates; Due to the retrospective application of the Revised IAS 19, EBITDA figures have been restated. 62 Roadshow presentation FY

63 net result of joint ventures Net result of joint ventures -2% -17% Netherlands +26% +4% Asia EMEA % -50% Americas Global LNG +15% +3% % -90% % % 28.1 Note: Amounts in EUR million; including associates; excluding exceptional items. 63 Roadshow presentation FY

64 Netherlands EBITDA* In EUR million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Occupancy rate** In percent Storage capacity In million cbm 85% 84% 82% 83% 88% 86% 88% 85% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Including net result from joint ventures and associates; excluding exceptional items; ** Subsidiaries only.. 64 Roadshow presentation FY

65 EMEA EBITDA* In EUR million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Occupancy rate** In percent Storage capacity In million cbm 89% 90% 88% 85% 80% 83% 85% 89% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Including net result from joint ventures and associates; excluding exceptional items; ** Subsidiaries only.. 65 Roadshow presentation FY

66 Asia EBITDA* In EUR million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Occupancy rate** In percent Storage capacity In million cbm 95% 95% 94% 94% 95% 95% 95% 93% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Including net result from joint ventures and associates; excluding exceptional items; ** Subsidiaries only.. 66 Roadshow presentation FY

67 Americas EBITDA* In EUR million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Occupancy rate** In percent Storage capacity In million cbm 91% 89% 89% 89% 91% 90% 89% 89% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * Including net result from joint ventures and associates; excluding exceptional items; ** Subsidiaries only. 67 Roadshow presentation FY

68 68

69 Outlook assumptions ~x% Share of EBITDA* Oil products Chemicals Industrial terminals & other pipeline connected infra Biofuels & vegoils LNG Contract duration ~50% ~20% 15% - 20% 7.5% - 10% 2.5% - 5% ~0-5 years ~1-5 years ~5-15 years ~0-3 years ~10-20 years Different demand drivers Steady Solid Mixed Solid 2015 Different demand drivers Steady Solid Mixed Solid Major Hubs supporting intercontinental product flows Import/distr. in major markets with structural deficits Other infra Note: Width of the boxes does not represent actual percentages; company estimates; * Excluding exceptional items ;including net result from joint ventures and associates. 69

70 Outlook elements Expansions and acquisitions Divestments Productivity and organizational efficiency enhancements Fx and pension costs Uncertainties incl. phased build-up 2015 Following Vopak s EBITDA of EUR 763 million we expect, on the basis of current market insights, to realize an EBITDA -excluding exceptional items- that exceeds the results of EUR 768 million in 2015, instead of 2016, as previously announced. 70

71 Other topics 71

72 FX translation effects EBITDA transactional currencies In percent FX translation-effect on EBITDA In EUR million USD SGD EUR Other 22% Netherlands EMEA Asia Americas Non allocated Total % 14% FX translation-effect on EBITDA In EUR million 26% Netherlands EMEA Asia Americas Non allocated Total Roadshow presentation FY

73 Other topics Effective tax rate* In percent * Excluding exceptional items. Pension cover ratio In percent Roadshow presentation FY

74 We have built our company over 400 years on trust and reliability Royal Vopak I Westerlaan 10 I 3016 CK Rotterdam I The Netherlands I Tel: I Fax: I